EXERCISE 4-1

DIXON COMPANY
Worksheet
For the Month Ended June 30, 2017

Account Titles Trial Balance Adjustments Adj. Trial Balance Income Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 2,320 2,320 2,320
Accounts
Receivable 2,440 2,440 2,440
Supplies 1,880 (a) 1,380 500 500
Accounts Payable 1,120 1,120 1,120
Unearned Service
Revenue 240 (b) 140 100 100
Owner’s Capital 3,600 3,600 3,600
Service Revenue 2,400 (b) 140 2,540 2,540
Salaries and
Wages Expense 560 (c) 210 770 770
Miscellaneous
Expense 160           160 160
Totals 7,360 7,360
(a)
Supplies Expense 1,380 1,380 1,380
Salaries and
Wages Payable           (c) 210           210                               210
Totals 1,730 1,730 7,570 7,570 2,310 2,540 5,260 5,030
Net Income    230                        230
Totals 2,540 2,540 5,260 5,260
EXERCISE 4-2

SAVAGLIA COMPANY
(Partial) Worksheet
For the Month Ended April 30, 2017

Adjusted Income
Trial Balance Statement Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr.
Cash 10,000 10,000
Accounts Receivable 7,840 7,840
Prepaid Rent 2,280 2,280
Equipment 23,050 23,050
Accum. Depreciation
—   Equipment 4,900 4,900
Notes Payable 5,700 5,700
Accounts Payable 4,920 4,920
Owner’s Capital 27,960 27,960
Owner’s Drawings 3,650 3,650
Service Revenue 15,590 15,590
Salaries and Wages
Expense 10,840 10,840
Rent Expense 760 760
Depreciation Expense 650 650
Interest Expense 57 57
Interest Payable             57                                     57
Totals 59,127 59,127 12,307 15,590 46,820 43,537
Net Income 3,283                         3,283
Totals 15,590 15,590 46,820 46,820
4-34

Copyri
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2015 (a) WARREN ROOFING
John Worksheet
Wiley For the Month Ended March 31, 2017
&
Adjusted Income
Sons,
Account Titles Trial Balance Adjustments Trial Balance Statement Balance Sheet
Inc.   
Weyga Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
ndt, Cash  4,500  4,500  4,500
Accou Accounts Receivable  3,200  3,200  3,200
nting Supplies  2,000 (a) 1,520    480    480 PR
Princip Equipment 11,000 11,000 11,000
les,
OB
Accumulated
12/e, Depreciation—Equipment 1,250 (b)   250 1,500 1,500 LE
Solutio Accounts Payable  2,500  2,500 2,500 M 4-
ns Unearned Service Revenue    550 (c)   290    260 260
Manua
1A
Owner’s Capital 12,900 12,900 12,900
l   (For Owner’s Drawings  1,100  1,100  1,100
Instruc Service Revenue 6,300 (c)   290  6,590 6,590
tor Salaries and Wages
Use    Expense  1,300 (d)   700  2,000 2,000
Only) Miscellaneous Expense    400                 400   400
Totals 23,500 23,500
Supplies Expense (a) 1,520  1,520 1,520
Depreciation Expense (b)   250    250   250
Salaries and Wages
   Payable           (d)   700                700                                     700
Totals 2,760 2,760 24,450 24,450 4,170 6,590 20,280 17,860
Net Income 2,420                       2,420
Totals 6,590 6,590 20,280 20,280

Key: (a) Supplies Used; (b) Depreciation Expensed; (c) Service Revenue Recognized; (d) Salaries Accrued.
PROBLEM 4-1A (Continued)

(b) WARREN ROOFING

Income Statement
For the Month Ended March 31, 2017

Revenues
Service revenue.................................................. $6,590
Expenses
Salaries and wages expense............................. $2,000
Supplies expense................................................ 1,520
Miscellaneous expense...................................... 400
Depreciation expense......................................... 250
Total expenses............................................ 4,170
Net income.................................................................. $2,420

WARREN ROOFING
Owner’s Equity Statement
For the Month Ended March 31, 2017

Owner’s Capital, March 1........................................ $ 2,900

Investments.................................................. 10,000
Add: Net income.................................................... 2,420
12,420
15,320
Less: Drawings....................................................... 1,100
Owner’s Capital, March 31...................................... $14,220

WARREN ROOFING
Balance Sheet
March 31, 2017

Assets
Current assets
Cash..................................................................... $4,500
Accounts receivable........................................... 3,200
Supplies............................................................... 480
Total current assets.................................... $ 8,180
Property, plant, and equipment
Equipment........................................................... 11,000
Less: Accum. depreciation—equipment.......... 1,500 9,500
Total assets.................................................. $17,680
PROBLEM 4-1A (Continued)

WARREN ROOFING
Balance Sheet (Continued)
March 31, 2017

Liabilities and Owner’s Equity

Current liabilities
Accounts payable.................................................. $2,500
Salaries and wages payable................................. 700
Unearned service revenue.................................... 260
Total current liabilities.................................. $ 3,460
Owner’s equity
Owner’s capital...................................................... 14,220
Total liabilities and owner’s equity.............. $17,680
(c) Mar. 31 Supplies Expense........................................ 1,520
Supplies................................................ 1,520

31 Depreciation Expense................................. 250

Accumulated Depreciation—
   Equipment......................................... 250

31 Unearned Service Revenue........................ 290

Service Revenue.................................. 290

31 Salaries and Wages Expense..................... 700

Salaries and Wages Payable............... 700
(d) Mar. 31 Service Revenue.......................................... 6,590
Income Summary................................. 6,590

31 Income Summary......................................... 4,170

Salaries and Wages Expense............. 2,000
Supplies Expense................................ 1,520
Depreciation Expense......................... 250
Miscellaneous Expense....................... 400

31 Income Summary......................................... 2,420

Owner’s Capital.................................... 2,420

31 Owner’s Capital........................................... 1,100

Owner’s Drawing.................................. 1,100